Crypto Prices Predicted to Rise High Again
The recent plunge in the cryptocurrency market has been now marked to be worse than the Dot.Com disaster of the early 2000s. However, unlike the Dot.Com bust, cryptocurrencies have been known to plunge to almost zero and then make huge rebounds.
And with the events of the recent weeks, the biggest question is whether the cryptocurrency markets will rise again. According to some experts, this will happen now.
Current Situation
At the time of writing this article, the prices of most of the cryptocurrencies are soaring upwards once more. Ethereum is up by 15.48%, Bitcoin is up by 2.81% and Ripple has gained 4.95%. In fact, almost every single cryptocurrency has shown gains since the price plunge this weekend.
Added to the price rise of the individual cryptocurrencies, the entire market’s capitalization is now once again above the $200 billion mark, gaining more than $13 billion in the last 24 hours.
Reasons Why the Market Will Soar Again
According to industry experts, there are some important reasons why the cryptocurrency market is going rise again.
The first is the recovery of Ethereum. Since its all-time high of $1,400 in December last year, the price of Ether has fallen by more than 80%. And since that time, the cryptocurrency has been struggling to make small gains. That changed this week, after the altcoin has jumped up by 20% overnight.
And since many of the top cryptocurrencies are built on the Ethereum blockchain, a strong recovery would mean that they would also rise.
The second reason is the way Bitcoin is charting an unnoticed reversal. When the data trend is analyzed, the lows that Bitcoin has been hitting are gradually increasing. The trend line connecting the lows shows is pointing towards long-term exhaustion from a bearish market.
Most importantly, the risk appetite in global markets is once again going up with reports that the US and China are ready to negotiate. And while, having seen the trends of discussions between the two countries, these latest talks could also lead nowhere, it still has pumped up markets.
Turkey has also hiked its rates by 625 basis points to help boost its currency. This move has helped equity markets, especially emerging markets, go higher across the world.
According to the founder and Chief Executive Officer of the cryptocurrency investment company Galaxy Digital Capital Management, Mike Novogratz, crypto prices have finally hit bottom and are now primed to climb.
Novogratz also pointed to data trends that indicated that the performance of the largest cryptocurrencies is now touching the highs of late 2017, just before the massive price rises.